The Italian Insurance Premium Tax Prepayment
Dear Visitor,
Welcome to the IPT Solutions blog!
We have timely chosen to dedicate our first post to the Italian IPT prepayment, whose annual deadline - 16th of November - is fast approaching.
Legal Background
Pursuant to article 9 indent 1 bis of the Italian IPT Law 1216/1961, insurance companies active within the Italian territory are obliged to transfer a prepayment ("acconto") amount equal to 100% of their IPT and Antiracket liabilities declared for the previous tax year, deducting any IPT reported under the tax-code AB15 of the annual return for the line of business mandatory Motor Third Party liability ("assicurazioni contro la responsabilità civile derivante dalla circolazione dei veicoli a motore").
The amount prepaid can then be offset against IPT liabilities only (i.e. not versus contributions due to Solidarity Fund for Victims of "Antiracket") being reported from January's period in February the following year.
Application
In simpler terms, it means that:
The prepayment due by 16/11/2025 for tax year 2026 is to be historically based on the 2024 annual declaration submitted by 31/05/2025.
The prepayment value for tax year 2026 shall equal AB36 (total of IPT) plus AC14 (total of Antiracket) minus AB15 (mandatory Motor Third Party liability) from the 2024 annual declaration.
The prepayment paid by 16/11/2025 can be offset against the IPT amount due for January 2026 reporting period by 28/02/2026.
Payment Method
Just like for any other tax in Italy, the prepayment shall be completed via F24 model inputting the tax-code ("codice tributo") 3355 in the form, and December of the current year as period.
Insurers that are unable to comply with the official method, are kindly allowed by the Italian Tax Authorities to settle via wire transfer using the general IPT IBAN number, and displaying the 3355 code in the payment reference.
Total and partial exemptions
Insurance companies that are deregistered in Italy prior to the concerned prepayment deadline date are not required to dispose the transfer.
Insurance companies carrying IPT residual credit as of 16/11 can offset this amount in full or partially against the prepayment amount formally due. The amount offset shall then be displayed in cell AC5A of the annual declaration for the tax year related.
Historical rates
From its introduction in early 2000s and until 2007, the prepayment was calculated at 12.5% of previous year's liabilities.
The percentage has been increased as follows:
2008: 14%;
2009: 30%;
2010: 40%;
2018: 58%;
2019: 85%;
2020: 90%;
2021: 100%.
Transfer of prepayment
It is not allowed between active taxpayers.
Previous rulings of Agenzia delle Entrate (e.g. n. 786/2021) have clarified that a transfer can only be part of a merger or business branch sale/transfer, with specific procedure to be followed in order to be acknowledged by the Tax Authorities.
Additional notes
Based on our direct experience assisting insurance companies reclaiming their IPT credit in Italy, and in light of the provision of article 30 IPT Law 1216/1961, it is extremely important to bear in mind the three-year limitation from the payment date, within which a refund can be sought.
No doubts we will touch again on this subject in future articles.
Whether to inquiry on an IPT prepayment credit refund or transfer or for general information, IPT Solutions are at your disposal.
